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View all search resultsCooperatives, religious groups to keep receiving mining concessions
Energy minister Bahlil Lahadalia insists that cooperatives and religious will remain eligible for priority mining licenses after the Constitutional Court struck down direct appointments, pledging to introduce new implementing regulations accordingly to ensure transparent vetting.
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Piles of coal are seen on barges on Aug. 16, 2022, in Samarinda, East Kalimantan. (AFP/Adek Berry)
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resident Prabowo Subianto’s administration will introduce new regulations to establish transparent procedures for granting priority mining permits to cooperatives and religious organizations, after the Constitutional Court ruled that the government cannot directly appoint recipients.
Energy and Mineral Resources Minister Bahlil Lahadalia revealed the plan on Monday, saying either a ministerial regulation or a ministerial decree would be issued to create a selection mechanism for priority mining business license area (WIUP) recipients.
“The priority [mechanism] will remain in place. But the court stated that there must be clear mechanisms and regulations in place. We believe the court’s decision is a positive step because we also want the entire process to be conducted transparently,” Bahlil said.
Under the planned new regulations, Bahlil said entities seeking to manage mining operations would now have to meet certain requirements, including being based in the area where the mining activities are located.
In its ruling last week, the court declared that the central government can grant “priority allocations” of mining concessions to cooperatives, small and medium enterprises (SMEs) and businesses owned by religious organizations only through clear parameters and transparent assessment and not through a direct appointment.
The court held that a selection process should be established under the priority allocation mechanism to ensure fairness and equal treatment, noting that not all applicants have the same level of capacity, experience or resources to participate in the sector.
Read also: Court revokes direct appointment for mining permits
